Assess Your Business Health: Working Capital Calculator
Working Capital Calculator
Determine your company's short-term liquidity and operational efficiency by calculating its working capital.
Input Your Data
Assets that can be converted to cash within one year (e.g., cash, accounts receivable, inventory).
Obligations due within one year (e.g., accounts payable, short-term loans).
Your Results
Working Capital:
$0.00
The difference between current assets and current liabilities.
How It Works
- Enter your total current assets.
- Input your total current liabilities.
- Click "Calculate" to see your working capital.
- The "Clear" button will reset all fields.
Formula for Working Capital: Current Assets - Current Liabilities
How the working capital calculator works
Working capital measures the short-term resources a business has left after covering its short-term debts. Enter your total current assets and total current liabilities from the balance sheet.
Worked example
Current assets are 60,000 (cash 15,000, receivables 25,000, inventory 20,000) and current liabilities are 40,000. Working capital = 60,000 − 40,000 = 20,000.
Frequently asked questions
What does negative working capital mean?
Current liabilities exceed current assets, which can signal difficulty paying short-term debts. Some businesses with very fast cash cycles operate this way deliberately.
How is it different from the current ratio?
Working capital is an amount. The current ratio divides current assets by current liabilities and gives a ratio.
Related: Working capital · Current ratio · Balance sheet · All calculators
